German factory orders rose strongly in October in a development that's likely to ease concerns over the state of Europe's largest economy.

The Federal Statistical Office said Friday that October orders were up 2.5% over September. Domestic orders provided the main impetus behind the rise, rising 5.3%. Foreign orders swelled only 0.6%.

The agency also upwardly revised the previous month to show a 1.1% rise.

Germany's economy contracted slightly in the second quarter but avoided recession with meagre 0.1% growth in the third quarter.

UniCredit economist Andreas Rees says it's "too early to push the all-clear button" for the industrial sector, but that the factory order figures, which beat economists' forecast of a 0.5% rise, were a "promising start".